Improving effectiveness of development cooperation and the role of private sector
- engage with representative business associations to improve policy, legal, regulatory and institutional environments for private investment,
- enable the participation of the private sector in the design and implementation of development policies and strategies,
- further develop innovative financial mechanisms to mobilize private finance,
- promote “aid for trade,” as an engine of sustainable development, and
- encourage public and private sectors to advance the mutually reinforcing development and business outcomes.
At the same time, the Global Partnership for Effective Development Cooperation (GPEDC) was launched. GPEDC showcases an open platform for the exchange of knowledge and the regular review of progress to ensure accountability for the implementation of the Busan principles at the political level. The GPEDC includes members from developing and developed countries, international financial institutions, parliaments, private sector entities, philanthropic foundations, trade unions and civil society organizations.
At the First High-Level Meeting of the GPEDC in Mexico City in April 2014, the private sector was spotlighted as one of five priority work streams. Together with the other multilateral development banks, the IDB provided inputs and organized two sessions. The overall takeaways from the private sector-related sessions included the importance of the public sector to reduce risk for private investors in emerging markets, the central role of resource mobilization and opportunities for private companies to achieve both business and development objectives through their core work. After the Mexico meeting, workshops were held in Seoul in November 2014 and Brussels in January 2015 to follow up implementation of GPEDC initiatives and develop workplans.
Throughout the process, a multi-stakeholder platform called Partnership for Prosperity (P4P) has led private sector-related activities. Composed mainly of governments, business representatives and international organizations, P4P provides a unique forum to share knowledge and build on strategic partnerships with the private sector to contribute toward inclusive and sustainable development. The IDB joined P4P as a formal member in January 2015 to work with the German Development Cooperation agency and other partners for the Building Evidence work stream. Together they aim to improve the measurement of results of private and public partnerships by sharing tools and approaches applied by private business and highlighting their best practices.
Our goal for this collaborative effort is to bring public and private development practitioners together to explore the use of common metrics and tools and apply them widely.
We will continue to contribute to the global efforts to enhance the effectiveness of development cooperation. We see the role of the private sector as particularly catalytic to promote inclusive and sustainable development.
Learn more about the GPEDC at http://effectivecooperation.org/
About the Author
Ichiro Toda is Lead Development Effectiveness Specialist in the Structured and Corporate Finance Department at the IDB.
Adapted from a post originally published on the blog of Development Effectiveness